Developing investment-ready business cases with 4P

SNV and TheRockGroup published a series of three vision papers based on learnings from the Partnering for Value Project. This project aims to develop best-practices on brokering successful Public-Private-Producer Partnerships (4Ps). The authors believe that such investments will benefit both the enterprises and the smallholder producers. One of the aims of a 4P is to build a profitable business case that can be used to attract external investments. The first paper (PDF) looks at the needs for capacity building support to let 4P partners become finance ready. In the paper concrete insights and recommendations to donors and development organisations are provided, to strengthen the capacities of each partner in the arrangement, so they can build an investment-ready business case. The second paper (PDF) focuses on the gap between the demand and supply for financing from agricultural SMEs. The paper analyzes the finance gap for agricultural SMEs and possible solutions to close it. The aim is to provide both private investors and international donors with recommendations towards their strategy regarding agricultural finance. The last paper (PDF) provides insights and recommendations for continued support after an investment deal has been signed, to ensure that a return on investment materializes in practice. The paper explains what type of capacity building is most effective to let 4Ps become a success, how support can be provided and a practical return on investment can be realized.

More on this topic

This guide explains foundational concepts of machine learning and how financial services providers can apply those methods to leverage information contained in satellite images for the purpose of credit scoring for smallholder finance. »

This paper identifies the policies and systems needed to ensure that private finance blending at the least does no harm and in practice plays a positive role for small-scale producers. The paper argues that private finance blending should be used with caution in rural development until donors can demonstrate the merits of blending using evidence-based results, in particular the added value of blending for development impact. »